China sets a 2021 growth target of more than 6%

Chinese President Xi Jinping attends the first day of the annual meeting of his National People’s Congress.
EFE

China set a growth target for 2021 “above 6%”According to the government work report, to which EFE had access, delivered to the National People’s Assembly (ANP, Legislative), which was inaugurated today.

The document indicates that this objective is set taking into account “the recovery of economic activity” – GDP grew by 2.3% in 2020 – and also sets an inflation growth target of around 3%. “This growth target will empower all of us to devote full energy to promoting reform, innovation and high-quality development,” the report said.

Likewise, China sets itself the goal of create more than 11 million urban jobs, adds the document.

The Asian country is also set to achieve a basic balance in the balance of payments and is committed not to make major changes in its macroeconomic policy this year.

Likewise, the report of your Government indicates that the growth of the item for Research and Development will be 7% per year during the five-year plan 2021-2025 -focused on achieving technological independence from China-, and that central government expenditures dedicated to research will grow 10.6% this year.

Li said there will be a research spending tax deduction of 75% for companies in general and 100% for manufacturing companies.

One of the star objectives of the 2021-2025 five-year plan that will be approved in this ANP is technological self-sufficiency, especially in fields where their supply chains can be compromised by geopolitical swings such as semiconductors.

However, as analysts at the consultancy Trivium recently recalled, this goal is “more difficult than it seems” because China has not met its own spending targets on research and development in the last four five-year plans.

Consumption, environment and relationship with the US

Among the plans listed today by Li also include “increasing the income of low-wage groups” and expanding the size of the middle class, and to do so they will try to make per capita income grow “in parallel with GDP.” “We will expand consumption. Personal income will increase through various channels. For example, in rural areas, where we anticipate an expansion of e-commerce and delivery,” Li said.

The report also contemplates a decrease of about 3% in energy consumption per unit of GDP and that clean heating will account for 60% of all heating in northern China, one of the most polluting areas in the country.

The government report also ensures that China will continue to implement “in its entirety” the so-called “One Country, Two Systems” principle that governs relations with the semi-autonomous city of Hong Kong.

China confirmed yesterday that the ANP meeting will undertake a Hong Kong electoral system reform, which, according to all indications, will significantly reduce the opposition’s chances of political action in the city.

Regarding foreign policy, the report assures that China will promote “mutually beneficial economic and trade growth with the United States on the basis of equality and mutual respect.”

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